Becky's utility takes the form: U(c,h) = 200

Economics Feb 27, 2022

Becky's utility takes the form: U(c,h) = 200.60.4 where c is consumption per month, h is the number of day-off Becky gets per month. Assume there are 30 days a month and Becky can choose to work as many days as she'd like. 1.1 How many days should Becky work per month if she wishes to maximize her utility? 1.2 How would a payroll tax of 10% affect Becky's decision on working days? 1.3 If Becky's mom gives her some money every month, how would this change your answer in 1.1?